By Siaka Momoh
LAGOS (Sundiata Post) – The Lagos Chamber of Commerce and Industry (LCCI) has told the Federal Government not to create the impression that governance has been abandoned, basing its argument on the fallout of current fuel scarcity on the economy.
The Chamber in a statement sent to Sundiata Post noted the current unprecedented energy crisis facing the country, saying the public power supply has practically collapsed, with a power generation of slightly above 1000mw; the option of alternative power generation is fizzling out with the acute shortage of petroleum products. The situation has become unbearable and needs to be fixed urgently.
It added: “Most economic and social activities have been paralysed with an imminent shut down of the entire economy. Yet there is no evidence of active engagement with stakeholders in the petroleum industry to bring an end to the crisis.The government needs to demonstrate accountability to the people.
“The LCCI acknowledges that the current administration is winding down, but the impression should not be created that governance has been abandoned. The administration has responsibility for the management of government business till the very last day of its tenure. The country and the economy should not be allowed to continue to drift as if there no one in charge.”
The Chamber argued that current situation is taking a huge toll on the citizens and the economy in the following ways:
i. Economic Activities across virtually all sectors are progressively grounding to a halt.
ii. Communication services are on the verge of being shut down as telecommunication companies have given indication of imminent shut down of their base stations.
iii. The aviation sector is also on the verge of being shut down due to non-availability of aviation fuel.
iv. Unbearable discomforts suffered by citizens as a consequence of the twin challenge of lack of electricity and fuel supply in households.
v. There is an avoidable social tension in the country.
vi. Many businesses have either shut down or drastically cut down on operating hours.
vii. The cost of transportation has skyrocketed.
viii. Investors in the Petroleum Downstream sector are in a quandary as to the policy direction of government with regard to the sector.
Meanwhile, the fuel supply situation has since improved with fuel station which had hitherto shut down dispensing products to motorists at between N150 and N200 per litre though.
It called for an urgent intervention by President Goodluck Johnathan to bring a halt to the imminent collapse of economic and social life in the country.
“There should be an immediate engagement of stakeholders in the petroleum industry to discuss the outstanding issues of indebtedness and related labour matters, in the interest of the economy and the citizens. The situation should not be allowed to degenerate any further.”
“The Lagos Chamber urges the incoming administration to immediately deregulate the oil and gas downstream sector (on assumption of office), in order to provide an enduring solution to the recurring problem of petroleum product scarcity, corruption inherent in the subsidy regime, the collapse of refineries, lack of investment in the downstream sector, loss of jobs and so on.
It argues, “Options available to the incoming administration in this matter are very limited. The current regime of subsidy and governments direct involvement in the operations of oil and gas sector should be discontinued. Government needs to get out of the way, so that the sector and the economy as a whole can make progress. This will pave the way for the restoration of normalcy in the sector and attract private capital, boost investments and create jobs.
“We appeal to the labour unions and the citizens to give the reform of the oil and gas sector a chance. The current model of managing the sector has done a colossal damage to the Nigerian economy. It is in the overriding interest of the economy and the citizens to quickly deregulate the sector.”
